Monday Night Football has been saved for Charter-owned Spectrum customers in Wyoming, with an 11th-hour deal that ends a contract dispute between Disney and Charter.
Disney channels, including its popular ESPN sports channels, went dark on Charter-owned Spectrum’s cable television services last week just as college football season was starting, leaving many diehard football fans blacked out of games they’d long been anticipating.
Both companies pointed fingers at each other during the outage, with Spectrum telling customers Disney was demanding excessive fees and bundling programming in many customers might not want. Disney, for its part, accused Charter of wanting its programming for free.
Both companies also touted alternative opportunities in the marketplace and suggested they didn’t really need each other anymore.
Making The Best Of A Broken Video Ecosystem
In the end, a deal was in the best interest of both companies.
Disney was facing the potential loss of almost 15 million Charter pay TV subscribers, which is 20% of ESPN’s linear subscriber base of 74 million based on an estimate by Macquarie senior analyst Tim Nollen. That would have amounted to roughly $5 billion in lost revenue, or 6%.
Charter, meanwhile, would have likely lost subscribers as well, as frustrated fans of football and popular shows like Wheel of Fortune explored alternative streaming options to finally cut the cable cord for good.
“Our collective goal has always been to build an innovative model for the future,” a joint statement released by Disney CEO Robert A. Iger and Charter CEO Chris Winfrey said. “This deal recognizes both the continued value of linear television nd the growing popularity of streaming services, while addressing the evolving needs of our customers.”
Iger and Winfrey also thanked customers for their patience during the past week as the dispute dragged into a second week.
“We are pleased that Spectrum viewers once again have access to Disney’s high-quality sports, news, and entertainment programming, in time for Monday Night Football,” the two said.
As part of the deal Disney has agreed to, ESPN+ will be included in Spectrum’s TV Select Plus Video Package, and ESPN’s Flagship.
Disney+ Basic’s ad-supported offering will be provided to Spectrum TV Select customers at no additional cost, as will its direct-to-consumer services once launched.
Charter also maintains the ability to offer a range of video packages at various price points, based on the viewing preferences of customers.
These stipulations had been big sticking points in the negotiations, with Charter insisting it needed those provisions to preserve flexibility in pricing and packaging for customers.
Not All Channels Are Back
There are a few networks that Spectrum and other Charter-owned companies aren't offering anymore.
These include Baby TV, Disney Junior, Disney XD, Freeform, FXM, FXX, Nat Geo Wild, and Nat Geo Mundo.
Charter will be offering its customers widespread access to a more “curated” lineup of 19 networks from the Walt Disney Co. going forward. The channels offered will include ABC-owned Television Stations, Disney Channel, F, and the National Geo Channel, as well as the full ESPN network suite.
Charter will also offer Disney’s direct-to-consumer services, including Disney+, Hulu, and ESPN+ to all its customers at retail rates.
Both Charter and Disney committed to robust efforts to “lead the industry” in mitigating unauthorized password sharing.
Charter Spectrum cable television is offered in a number of Wyoming communities, including Casper, Cheyenne, Gillette, Laramie and Buffalo.
Renée Jean can be reached at renee@cowboystatedaily.com.
